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Is it time to sell dollars and buy U.S. bonds? Morgan Stanley: The possibility of a rate cut in March is quite high.
Morgan Stanley expects the Fed to cut interest rates by 25 basis points for the first time in March 2025, with another possible cut in June. The drop in core PCE inflation data in January will support the March rate cut. It believes U.S. Treasury yields may have peaked and is Bullish about the U.S. Treasury market outlook, recommending Shareholding in 5-year Treasuries. It also points out that the decline in U.S. Treasury yields is a catalyst for dollar depreciation, recommending the sale of dollars and the Buy of euros, the British Pound, and yen.
Express News | Trump's nominee for the USA Treasury Secretary, SCOTT BESSENT: It is essential to ensure the status of the dollar as the world's reserve currency.
Gold has once again risen alongside the US dollar and US Treasury yields! Does this suggest something?
Is Gold shining with the glow of the "ultimate safe-haven asset"?
Rupee Dips to Lifetime Low Amid Firm Dollar Ahead of Key Jobs Data
After the "epic surge," what level is the dollar at?
Bank of America noted that the nominal and real effective Exchange Rates of the dollar are currently at multi-decade highs and are significantly overvalued among G10 MMF. Looking ahead this year, the dollar Exchange Rates may display a trend of "strong at first and weak later." In the short term, driven by U.S. tariff policies, the dollar will remain strong, but as these policies harm the U.S. economy and the rest of the world responds accordingly, the dollar will weaken later this year.
USD Remains Firm as GBP Underperforms – Scotiabank